Legal barrier to geothermal development removed

The House of Representatives passed on Tuesday the new Geothermal Law, eliminating the legal barrier for the development of Indonesia’s geothermal resources, which are among the largest in the world.

Energy and Mineral Resources Minister Jero Wacik said the new law heralded a breakthrough in the development of geothermal resources in the country because activities relating to geothermal development were no longer considered mining activities, such as the exploration and production of oil, gas, minerals and coal.

With this change, the development of geothermal fields located in forest conservation areas were no longer prohibited, the minister added. Under the Forestry Law, conducting mining activities in forest conservation areas is prohibited, causing delays in many geothermal projects that are mostly located in protected forests.